Warranty affiliation taking on declare funds for Americas Insurance coverage Firm – KPLCJuly 27, 2022
Lake Charles, LA (KPLC) – Claims by Americas Insurance coverage Firm, which supplied householders insurance coverage in Louisiana, will now be dealt with by a warranty affiliation, state Insurance coverage Commissioner Jim Donelon introduced Thursday.
U.S. Information reported in November that Americas Insurance coverage Firm misplaced its accreditation in October. Americas has been licensed in Louisiana since 1991.
Donelon referred to as the insurance coverage firm “financially troubled.”
He mentioned the insurance coverage firm was positioned into receivership in state district courtroom in Baton Rouge final week, paving the best way for the Louisiana Insurance coverage Warranty Affiliation to take over declare funds, “guaranteeing that almost all policyholders with pending hurricane claims will receives a commission.”
Americas has roughly 24,000 insurance policies and 13,000 Ida-related claims, and as of December 31, 2020, the insurer coated 1.31% of the Louisiana householders insurance coverage market, in accordance with Donelon.
Hurricanes Laura, Delta and Zeta price insurers $10.6 billion in 2020, Donelon mentioned. Hurricane Ida in 2021 is predicted to price insurers between $10 billion and $20 billion.
“Growing labor and supplies costs brought on by the hurricanes in addition to the current spike in inflation, has put a number of insurers in peril of exhausting their reinsurance protection and working out of cash,” Donelon mentioned within the information launch.
Donelon mentioned policyholders might be contacted by the court-appointed receiver or their insurance coverage agent about claims.
“Till just lately, Americas was domiciled in Washington, D.C., though primarily all its polices have been written — and all its Ida-related claims originated — in Louisiana,” Donelon mentioned. “The Commissioner of D.C.’s Division of Insurance coverage, Securities and Banking labored carefully with LDI and consented to the redomestication of Americas from D.C. again to Louisiana for the aim of conducting this rehabilitation.”
Donelon mentioned policyholders with questions ought to contact their insurer or insurance coverage agent. Policyholders with questions on claims ought to contact LIGA at 225-277-7151 or www.laiga.org. Policyholders may contact LDI at 800-259-5300 or www.ldi.la.gov for help.
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